Panama is one of the more unique places to visit in Central America as a result of the Panama Canal, which has 170 feet locks and there is no better way to see the canal than on a cruise along this waterway.

Other highlights include Embera Indian Villages, enjoying outdoor activities such as zip lining or trekking in lush jungles on the outskirts of the city, and spending time on white sandy beaches that back out to azure blue seas.

However, Panama has a rising crime rate and tourist targeted scams which means that you need to exercise caution on a trip here.

This may allow you to negotiate the bribe down when you show that you have not much cash on you.

8. Car rental insurance scam

Driving in Panama. Source: vangabonds.com

How it works:

In Panama, you can get two types of rental car insurance:

3rd party liability insurance which is compulsory.

Insurance that covers everything else.

In many instances, car rental agencies here will try packaging the 3rd party insurance package with other products they are selling.

If you are not well-versed, they will try overselling, explaining in a way that makes you believe you need all they are offering even if you already have other forms of insurance possibly through your credit card.

The ones at Tocumen airport are particularly notorious for this. They will force you to buy the full insurance package they offer, even if you show them your other insurance policies.

Often, they will say it’s not acceptable or that the policy needs to be in Spanish. Anything you say, they will have an excuse.

What to do:

Get a rental car elsewhere (e.g. Albrook airport or downtown in El Cangrejo).

9. Car rental deposit scam

How it works:

If you do not purchase the car rental agencies’ full insurance package, your credit card will be charged with a deposit amount.

This amount will be higher than your total rental costs, and the difference will be credited back to you once the vehicle is returned in good shape.

Note that those who buy the full insurance package will still have to put up a deposit, but their credit cards will not be charged at that point.

The scam is that the agencies will delay the refund of the difference. This is because you only have 100 days from the transaction date to put in a formal dispute against any credit card transactions.

Once that time has passed, you will not have any recourse, hence, these agencies will delay the refund as long as they can.

What to do:

Check your credit card statement and follow up religiously.

10. Damages on rental car

Panama Tocumen airport. Source: panamatoday.com

How it works:

When returning your rental car at Tocument Airport, the many rogue car rental agencies here are going to find damages on your car one way or another.

It could be something like minor scratches beneath the car’s front bumper or a very tiny chip in the windshield.

It is suspected that these “damages” have always been there, just that they were intentionally not raised during the initial inspection and not marked on the inspection form.

What happens is that you will be charged a few hundred dollars as repair costs, but these “damages” will not be repaired and will be passed on to the next customer to be exploited.

Even if you demand to speak with the manager, they will delay you and claim that the manager can’t be found. This is because they know you have a flight to catch and have no time to waste.

Some assume that they can pay the damages and sort matter out once they get home with the parent company.

However, once home, you will realize that the parent company has no control over the Panamanian branch, or at least that is what they claim.

What to do:

Three things to do:

Rent and return your car somewhere else other than at Tocumen airport (e.g. Albrook airport or downtown in El Cangrejo), and not on the day of your flight back home.

Use legitimate aggregator platforms like AutoEurope– over 60 years of industry experience, super reliable with best price guarantee.

During the initial inspection, inspect the car thoroughly and make sure the inspector marks all visible “damage” (even minor dents or scratches). In particular, pay attention to the car’s windshield and under the bumpers.

11. Slashed tire scam

How it works:

This scam is prevalent in Panama City and particularly targets rental cars which may have the name of the company displayed on them.

At the beginning of the scam a scammer will slash the tires of your car. When you drive off they will follow you and wait for the tire to blow out.

They will then stop and offer to help you change the tire.

As you are doing so and are distracted by the process they will take the opportunity to steal your possessions from your car.

What to do:

If someone tries to flag you or help you, do not stop and decline any help.

Should you want to stop to check if there is any damage to your car, stop a distance away and only step out in full view of traffic and others.

However, make sure that you do not leave any valuables exposed in the car: